Saturday, May 5, 2018

What is Agreement on Agriculture (AoA) in WTO and its implications for India?



Answer
q  Signed as part of the Uruguay Round Agreement in April 1994.
q  Came into force w.e.f 1 January, 1995. Had 10-year implementation period from 1995 to 2004, for developing countries.
q  Covers three broad areas of agriculture and trade policy:
Ø  Market access, No restriction on farm trade except Tariff
Ø  Domestic support and Green Box , Amber Box, Blue Box
Ø  Export Subsidies- Required developed countries to reduce export subsidies by at least 36% (by value) or by at least 21% (by volume) over the five years to 2000.
Ø  India is under no obligation to reduce domestic support or subsidies currently extended to agriculture as the support being given is well below permissible level of 10 per cent of the value of its agricultural output.
Ø  India were permitted to offer ceiling bindings instead of tariffication since India was maintaining QRs on Balance of Payment grounds.
Ø  Anticipated increase in exports of agri-products has not materialised


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